Derivatives

12 Months Ended

Dec. 31, 2011

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

15. Derivatives

The Company held or had outstanding the following derivative financial instruments as of December 31:

	2011	2010	Expiration
Derivatives issued:
Warrants, exercisable beginning June 20, 2007, to purchase the
Company’s common stock issued to three investors at a purchase
price of $18.16 per share	—	378,472	12/19/2011

Warrant Derivative to Purchase MTI Common Stock: The warrants issued during the Company’s December 2006 capital raise were legally freestanding, detachable and transferable by the holders. The features of the warrant allowed both straight cash exercises as well as cashless exercises. Due primarily to a stipulation in the warrant agreement which allowed a potential cash settlement with the holders if the Company was acquired by, or merged with a private company, these warrants were classified as an asset/liability derivative in accordance with the accounting guidance.

The estimated fair value of this warrant at the date issued was $18.16 per share, using a Black-Scholes Option Pricing Model and assumptions similar to those used for valuing the Company’s employee share-based compensation. The fair value of the derivative was recorded in the “Derivative liability” line on the consolidated financial statements, and was valued quarterly using the Black-Scholes Option Pricing Model. The assumptions used for the valuations as of December 31 were as follows:

	2010
Expected life of option (days)	365
Risk-free interest rate	0.29	%
Expected volatility of stock	219.4	%
Expected dividend yield	None

The Company recognized changes in fair value in its Consolidated Statements of Operations in the line titled “Gain (loss) on derivatives.”